Sadly, yes. Bailey does die. It is very hard on Tibby and she is very upset because she loved Bailey as a friend. Tibby's hamster also dies, and Tibby is upset. At the end, Tibby burries Mimi (her hamster) on top of Bailey's grave because Bailey loved Mimi.
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No, Bailey does not die in the book "The Sisterhood of the Traveling Pants" by Ann Brashares. Bailey undergoes surgery and successfully recovers, although she faces challenges with her health throughout the story.